Turnover at BMW Ireland tumbles €59.3m

TURNOVER AT BMW Ireland fell by €59.3 million to €204.5 million last year, with operating profit dropping by €6.7 million to €8.9 million, according to its accounts for 2008.

Despite the fall in profits, the firm paid a €15.4 million dividend to its parent company in Germany, up from €10.3 million in 2007.

According to the director’s statement, the company’s finances for 2008 were strongly influenced by the introduction of the new emissions-based tax system on July 1st last year. The significant drop in consumer confidence during the latter part of the year also impacted on sales.

The accounts relate to a time when total new car sales in Ireland fell 18.7 per cent for the year to 151,607. BMW finished 2008 as the biggest selling premium brand with sales of 5,627 new cars, representing a 3.7 per cent market share.

This year, the new car market has fallen a further 64 per cent up to the end of August, while BMW’s market share has fallen to 2.3 per cent.

Audi has usurped it as the leading premium brand, with a 4.2 per cent share of the new car market this year.

BMW recorded several changes to its dealer network in 2008. During the period of the accounts, Maxwell Motors in Blackrock ended its franchise with the premium German brand.

In Galway, Barry Motors was replaced by Tom Hogan Motors, which then went into liquidation in June this year.

Last March one of the brand’s oldest dealerships in the country, Pat Keogh’s of Limerick, closed with the loss of 45 jobs. Kildare-based BMW dealer N Conlan Sons will take over the Limerick retail franchise for the brand at the end of October.

Earlier this month BMW Ireland appointed a new managing director, John Ives, who joined from BMW UK, where he was the national sales operations manager.